Health CS warns Hospitals over fraudulent activities through SHA

Health CS Aden Duale, Kisumu Governor Anyang' Nyong'o and other health officials in kisumu/phot by Fredrick Odiero

Health Cabinet Secretary, (CS) Aden Duale has warned health facilities which engage in fraudulent activities through the Social Health Authority, (SHA) will be s Kisumuhut down, urging the public to be vigilante in monitoring such errant health facilities.

The CS was speaking in on Wednesday when he officially launched the Taifa Care programme and the Digital Health Transformation Agenda in Kisumu, marking a major step toward universal healthcare access in Kenya.

Duale divulged that Ksh3.6 million Kenyans have received free treatment for common illnesses, while another 2.1 million benefited from specialized care, including 400,000 dialysis sessions and 17,000 cancer treatments.

“We are transforming how Kenyans access healthcare. With these tools, we can ensure transparency, fight fraud, and improve service delivery,” said CS Duale during the event hosted by Kisumu Governor Prof. Anyang’ Nyong’o.

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“SHA-contracted facilities must meet strict standards. We will not allow Kenyans to be exposed to unsafe or substandard care,” Duale said.

Earlier Duale said the Ministry of Health has shut down 35 private hospitals across the country over alleged irregularities in the administration of Social Health Authority (SHA).

He said the affected facilities, located in Kisumu, Bungoma, Busia, Nairobi, Kilifi, Mandera, Wajir, and Kajiado counties were found to have submitted double claims in a coordinated scheme to defraud the public health insurer.

Duale said the crackdown was part of a broader effort to rein in unscrupulous health providers exploiting SHA for personal gain.

He revealed that some hospitals had presented fake documents to secure SHA accreditation, while others billed outpatient services under inpatient claims to inflate reimbursements.

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Additionally, discrepancies were discovered in declared bed capacities.

“How can a hospital with 14 beds claim to have 100? This is outright theft. They think we are still in the NHIF era where such activities thrived,” said the CS.

He added that files from the ongoing audit would be handed over to the Directorate of Criminal Investigations (DCI) for further probe, a move that could lead to more closures countrywide.

The CS warned medical practitioners against engaging in fraudulent practices, saying the government would take stern action against those found culpable.

“If you are a doctor and your code is used to steal from SHA, you will have yourself to blame,” he warned.

The CS also cautioned Kenyans enrolled under SHA against colluding with hospitals to defraud the insurer.

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He defended the SHA initiative, a flagship programme of President William Ruto’s administration, saying it was already yielding results and would not be derailed by rogue actors.

“SHA is working. We will not allow anyone to steal from it and compromise its operations,” he stated.

The digital health plan includes regulations meant to improve patient registration, track health records, and enhance coordination across healthcare providers.

These rules are aligned with Kenya’s Vision 2030 development blueprint and have been under discussion since April 2025, when Duale met the National Assembly Committee on Delegated Legislation, chaired by Ainabkoi MP Samuel Chepkonga.

Since Taifa Care was rolled out in October 2024, over 23.6 million Kenyans have registered with the Social Health Authority (SHA)—the state agency overseeing implementation of the Social Health Insurance Act, 2023. Of these, 5.7 million have already accessed care at public, private, and faith-based health facilities.

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To maintain integrity and safety within the system, the Ministry of Health has intensified its crackdown on fraudulent and unlicensed health providers.

In recent months, 728 health facilities have been closed for non-compliance, while 301 others have been downgraded.

A new digital tracking system has also been introduced to monitor patient visits and prescriptions in real time.

The system is designed to help eliminate counterfeit drugs and reduce inefficiencies within the healthcare sector.

The Kisumu launch was attended by senior health officials, including Medical Services Principal Secretary Dr. Ouma Oluga, Director General for Health Dr. Patrick Amoth, SHA CEO Dr. Mercy Mwangangi, Digital Health Authority CEO Eng. Anthony Lenaiyara, and JOOTRH CEO Dr. Richard Lesiyampe, who received the delegation.

The initiative is expected to drive a more accountable, efficient, and people-centered health system across the country.

By Fredrick Odiero

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